Which One of the Following Is NOT an Example of the Agency

question 21

Multiple Choice

Which one of the following is NOT an example of the agency problem?

• A)management refusing a merger because of the possibility of major changes in management
• B)taking a high-risk project to increase the value of the stock options held by management
• C)increasing the level of debt of the company to increase the return on equity value
• D)distributing a low level of dividends to have enough cash for bonuses

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Monthly Rates

Rates calculated or applied on a monthly basis, commonly found in subscriptions, rentals, or loans.

Annual Rates

The interest rate for a period of one year, often used in contexts such as loans or investments.

Diesel Fuel

A type of fuel derived from petroleum, used primarily in diesel engines, which are known for their efficiency and power.

Liter

A metric unit of volume equal to one cubic decimeter, used to measure liquids and other volumetric quantities.